Organic Growth
Customer Segmentation & Strategy Definition
CASE STUDY: DentCo
Apparently Large Market. Why Disappointing Performance?
DentCo manufactures a new, potentially industry-transforming,
dental system that provides patients both cosmetic and medical
benefits.
Despite much market optimism and praise from patients about its products, the company had substantially underperformed versus its revenue expectations and had suffered considerable losses.
A new CEO had taken the helm, and with key new members of management had begun to make major improvements in cost position.
With Costs Controlled, How to Find Real Growth?
With costs coming under control, the management
team had a need to define a clear path to capitalize on its
potential. But among senior managers there were numerous (and
differing) opinions about how to achieve growth.
The company had an abundance of market research and "customer information"; but as far as focusing the company choices, nothing was clear.
The CEO hired Quattro to help develop customer product strategies to drive profitable growth.
Prioritize Customer Segments. Quantify Profit Impact.
Worked with DentCo to define the alternative
customer groups where the technology could be targeted and
specific actions which might improve penetration.
Extensively interviewed potential customers in order to create an actionable customer segmentation scheme and to define how usage drivers and barriers differed by segment. Developed a detailed Market Model to quantify and rank the revenue potential by customer segment and penetration action.
Used the analysis to help prioritize company’s near-term marketing and product plans as well as core elements of DentCo’s long-term growth strategy.
Compelling Strategy. Large Increase in Company Value.
DentCo began implementing key growth initiatives
immediately and within six months of project completion, DentCo's
market cap had increased more than 200%.
